Dealer Groups Challenge Time-of-Trade Disclosure Proposal

The Municipal Securities Rulemaking Board’s proposed rule on dealers’ time-of-trade disclosure obligations is overly broad, lacks clarity and does not address important issues, such as disclosures to “sophisticated municipal market professionals” or to customers using online trading systems, warned muni dealers.

“We are concerned that this particular proposal has significant gaps and will significantly expand the existing time of trade obligation — something this proposal was not intended to do,” David Cohen, managing director and associate general counsel at the Securities Industry and Financial Markets Association, told The Bond Buyer Wednesday.

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